Katy Gallagher (ACT, Australian Labor Party, Shadow Minister for Finance) Share this | Hansard source

I move:

That the Senate take note of the answers given by the Minister for Finance (Senator Cormann) to questions without notice asked by Senators McCarthy and Gallagher today relating to the Australian economy.

What we've seen today from the government is more denial that any of the issues facing the Australian economy have anything remotely to do with them. This is despite six years in government and three terms. Whilst we've had a stable finance minister through that time, we've had a number of different Prime Ministers and a number of different treasurers. The evidence is mounting, I think, from experts—not just from Labor but from the RBA, from eminent economists across the country and now from international groups, such as the IMF and the WTO—all raising concerns around growth in advanced economies and more broadly, and here we have a government that is in stubborn denial in its refusal to actually do anything about it.

The latest document from the IMF—and this relates to the questions that Senator McCarthy and I asked today—has rung the alarm bells again around what's happening in the Australian economy. We've seen a very significant downward revision of expected growth. We've got a whole range of other economic indicators that have come out since the election, and the government continues to refuse to take notice of them. We've got the lowest level of growth since the GFC. We've seen the living standards of Australian families in decline. Every day you listen to the radio and there's another report. Whether it be around food insecurity, paying the bills or lack of wages growth, the real impact on families and households across the country is being reported on a daily basis. We have more than 1.9 million Australians who are looking for work or for more work. We have a staggering level of household debt, at 190 per cent of disposable income. Yes, while we've had tax cuts, the evidence to date—and I know the government is placing a lot of emphasis on next quarter's results—would show that people are using that money to pay down debt. They are not spending it to support growth across the economy.

We have business investment contracting, we have consumer confidence declining, consumption growth is weak and productivity is in decline. These are all facts. This is all what is happening, and we have a government that just says nothing about that. They say: 'No matter! The plan we took to the election, despite a lot of these results coming out post the election, is on all track.' The evidence is mounting that that is not the world in which we are living. That is not the world in which Australians are living. They are working harder and they are working longer but they are going backwards. That is the reality. You talk to absolutely anyone and you will not get a story of: 'Oh, it's all great. We are very confident the tax cuts are going to help us.' It's a very different picture.

Childcare costs are going up. Electricity costs are going up. Managing to afford the extras is impossible, because wages aren't growing, costs are increasing and there is uncertainty about what is going to happen in the future, and the government isn't offering any hope or any plan. It's not good enough to rest on what you promised last year or in the lead-up to the election anymore. People want to know that you have your hands on the levers and that you are listening and acknowledging the reality of the world in which they live. That's the job of the government. It's not to be stubborn and point the finger and say, 'It's all Labor's fault that this is happening,' despite our not being in federal government for, unfortunately, some time. That is not what the Australians who even voted for you and those who didn't vote for you want to hear. They want to hear: 'We are aware of the world in which you are living. We are aware of the pressures. This is what we are going to do to assist you to respond to it.' We are not getting that from the government at all.

We accept that you will point the finger at Labor. That's part of the show and the game that we play in this chamber. But, in all fairness, when we have the results that we've seen and the concern that we've seen and the lack of confidence and uncertainty going forward, it's the responsibility of this government to stand up and respond to the current situation—not to point the finger and blame but to accept the data, the evidence and the expert advice that is coming and respond to it. (Time expired)